ID :
14025
Sun, 07/27/2008 - 23:02
Auther :
Shortlink :
https://oananews.org//node/14025
The shortlink copeid
Japan eyes 'solidarity levies' to finance development assistance
TOKYO, July 27 Kyodo - The Japanese government on Sunday launched discussions on the possible introduction of tax systems for currency trading activities and airline ticket purchases to help fund its development assistant programs for poor countries, Foreign Ministry sources said.
By introducing the so-called ''international solidarity levy'' mechanism, the government is looking to secure funds to help the world achieve the U.N. Millennium Development Goals aimed at stamping out poverty and tackling health problems in developing nations, the sources said.
Various studies have shown that the conventional official development aid system has failed to provide sufficient funds to achieve the goals, and some countries have advocated innovative financing mechanisms such as the so-called international solidarity levies.
The government plans to officially join the Leading Group on Solidarity Levies to Fund Development, a French-initiated international organization set up in 2006. Japan has been an observer country to the group.
Specifically, the government is mulling introducing a currency transaction development tax of as low as 0.005 percent on foreign currency trading activities, according to the sources.
It also aims to implement an airline ticket levy with which it can collect taxes from relatively wealthy people, they said.
Tetsuji Tanaka, head of Tokyo-based civic group altermonde, which promotes the financing mechanism, hailed the government's move.
''The world needs to create a framework in which money flows from people reaping the benefits of globalization to those suffering the negative impacts of the phenomenon,'' he said. ''Japan's planned participation in the Leading Group will mark a huge step toward realizing such a system.''According to the Foreign Ministry, 28 countries have announced their intention of introducing the airline ticket levy by 2007, of which eight countries such as France and South Korea have already done so. The proceeds have been donated to the Leading Group and used for such purposes as tackling infectious diseases in developing countries.
No country has yet put into practice the currency transaction development levy.
Daily transactions in global currency exchange markets totaled $3 trillion in 2007. If a 0.005 percent levy is imposed on the transactions, about $33 billion, or one-third of the current level of global ODA, could be gathered.
Some financial industry experts point out that the levy system would also help stem transactions of speculative funds.
Calls for international solidarity levies have been growing in Japan, with parliamentarians establishing a bipartisan group promoting the system earlier this year.
In June, Prime Minister Yasuo Fukuda also indicated his intention of examining the possibility of introducing the system to secure financial resources for steps to combat global warming.
By introducing the so-called ''international solidarity levy'' mechanism, the government is looking to secure funds to help the world achieve the U.N. Millennium Development Goals aimed at stamping out poverty and tackling health problems in developing nations, the sources said.
Various studies have shown that the conventional official development aid system has failed to provide sufficient funds to achieve the goals, and some countries have advocated innovative financing mechanisms such as the so-called international solidarity levies.
The government plans to officially join the Leading Group on Solidarity Levies to Fund Development, a French-initiated international organization set up in 2006. Japan has been an observer country to the group.
Specifically, the government is mulling introducing a currency transaction development tax of as low as 0.005 percent on foreign currency trading activities, according to the sources.
It also aims to implement an airline ticket levy with which it can collect taxes from relatively wealthy people, they said.
Tetsuji Tanaka, head of Tokyo-based civic group altermonde, which promotes the financing mechanism, hailed the government's move.
''The world needs to create a framework in which money flows from people reaping the benefits of globalization to those suffering the negative impacts of the phenomenon,'' he said. ''Japan's planned participation in the Leading Group will mark a huge step toward realizing such a system.''According to the Foreign Ministry, 28 countries have announced their intention of introducing the airline ticket levy by 2007, of which eight countries such as France and South Korea have already done so. The proceeds have been donated to the Leading Group and used for such purposes as tackling infectious diseases in developing countries.
No country has yet put into practice the currency transaction development levy.
Daily transactions in global currency exchange markets totaled $3 trillion in 2007. If a 0.005 percent levy is imposed on the transactions, about $33 billion, or one-third of the current level of global ODA, could be gathered.
Some financial industry experts point out that the levy system would also help stem transactions of speculative funds.
Calls for international solidarity levies have been growing in Japan, with parliamentarians establishing a bipartisan group promoting the system earlier this year.
In June, Prime Minister Yasuo Fukuda also indicated his intention of examining the possibility of introducing the system to secure financial resources for steps to combat global warming.
